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BUSINESS STRATEGY
Review and monitoring
Lecturer: PHD. PHM QUC KHNH
Banking Academy (Vietnam)
khanhhvnh@gmail.com
Mobile: 0913210000
Strategic management process:
Performance and results are
it d d ith l
Strategy Review and Monitoring
Learning outcomes
monitored, compared with plans,
schedules and budgets, and adjusted if
necessary for the strategy success!!!
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After finishing this chapter, you will understand:
Defining a control system
Performance standards and indicators
Strategy Review and Monitoring
Learning outcomes
Techniques of performance review
How performance can be continuously monitored
The impact of technology on the review and
monitoring of performance
How performance might be improved as a result
of monitoring and review.
Control systems-
Control is achieved by
setting standards and
plans, monitoring actual
performance,
Strategy Review and Monitoring
CONTROLLING PERFORMANCE
p ,
comparing actual
performance with the
standards or plans, and
making any necessary
adjustments to bring the
two back into line.
Control systems- Types of control:
Strategy Review and Monitoring
CONTROLLING PERFORMANCE
Budgetary
t l
Budgetary
t l
Inventory or
stock
Inventory or
stock
control. control.
stock
control.
stock
control.
Production
control.
Production
control.
Quality
control.
Quality
control.
Control systems- Types of control task!
Strategy Review and Monitoring
CONTROLLING PERFORMANCE
y yp
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Performance monitoring and review.
Performance monitoring:
Keeping an eye' on progress, on an ongoing basis.
Progress may be monitoredthroughobservation
Strategy Review and Monitoring
CONTROLLING PERFORMANCE
Progress may be monitored through observation,
reports from team members or control systems,
progress meetings, sampling of output quality...
Performance review:
Taking a look at results and/or methods used in a
given period.
Performance standards and indicators:
Strategy Review and Monitoring
CONTROLLING PERFORMANCE
Effectiveness Efficiency Economy
Elegance Ethicality
Financial
performance
Non financial
performance
Observation.
Strategy Review and Monitoring
PERFORMANCE MONITORING
Taskinspection
Time particular tasks
Activitysampling
Activity can be Timeparticulartasks,
loggingwhenworkis
handedoutandwhenit
isreturnedcompleted
Recordlevelsofoutput
Activitycanbe
monitoredwith
reasonableaccuracy
(since,statistically,the
sampleshouldreflectthe
whole) withouthaving
tostandatthework
placeforlonghours
takingobservations
Reports.
Strategy Review and Monitoring
PERFORMANCE MONITORING
Timesheets Surveys
Timeanddiarysheets
areamorepreciseway
ofkeepingtrackofthe
allocationandduration
oftasks,providedthat
theyareconscientiously
maintainedandtruthful.
Themonitoring
mechanismmayneedto
beakindofsurvey
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Operational data:
Operations will already have produced a number of
records and documents, such as production and sales
charts, accounts, order forms, customer complaint forms,
t k i iti d d
Strategy Review and Monitoring
PERFORMANCE MONITORING
stock requisitions and records.
These are designed primarily to provide and record data
which are used in transactions and operations.
Provide management information about the level of
output, materials usage, performance to schedule, quality
problems.
Activity 5 (page 274)
Method study of performance:
Method study is the systematic
recording and critical examination of
Strategy Review and Monitoring
PERFORMANCE REVIEW
recording and critical examination of
existing and proposed ways of doing
work, as a means of developing and
applying easier and more effective
methods and reducing costs.
Method study:
Strategy Review and Monitoring
PERFORMANCE REVIEW
Areafor
investigation
Termsof
reference
Investigatethe
existing
investigation reference
methods
Recordthe
existing
methods
Analysethe
existing
methods
Developan
alternative/
newmethod
Systems analysis: is the process of
analysing methods, procedures, sequences
of activities, paperwork flows and the inputs
requiredandoutputs expectedin operational
Strategy Review and Monitoring
PERFORMANCE REVIEW
required and outputs expected in operational
or informational processing systems which
are based on computers.
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Systems analysis:
The purpose of systems analysis is to
improve existing systems or to design new
Strategy Review and Monitoring
PERFORMANCE REVIEW
systems for processing data.
The sequence of activities in a systems
analysis are similar to those involved in
method study.
Systems analysis:
Strategy Review and Monitoring
PERFORMANCE REVIEW
Definingthe
objectivesofand
constraints
Definingthe
objectivesofand
constraints
Investigateand
recorddata
Investigateand
recorddata
constraints constraints
Specificationfor
newormodified
system
Specificationfor
newormodified
system
Designanewor
modifiedsystem
Designanewor
modifiedsystem
Systems analysis:
Strategy Review and Monitoring
PERFORMANCE REVIEW
Steps Nestlecaf (Hanoi):Numberofclients
wasdecreased20%inMay2014
Definingtheobjectives
f d t i t ofandconstraints
Investigateandrecord
data
Specificationfornew
ormodifiedsystem
Designanewor
modifiedsystem
Value analysis:
Value analysis is a cost reduction
technique aimed at identifying
Strategy Review and Monitoring
PERFORMANCE REVIEW
technique aimed at identifying
unnecessary cost elements in an item,
by analysing its function and design in
detail.
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Value analysis:
Strategy Review and Monitoring
PERFORMANCE REVIEW
Select the area(s) Select the area(s)
Definetheproduct's Definetheproduct's
Recordthe
components of the
Recordthe
components of the Selectthearea(s) Selectthearea(s)
function function
componentsofthe
product
componentsofthe
product
Calculateexisting
costs
Calculateexisting
costs
Consider
alternatives
Consider
alternatives
Evaluatethe
alternativesand
make
recommendations
Evaluatethe
alternativesand
make
recommendations
Value analysis:
Strategy Review and Monitoring
PERFORMANCE REVIEW
NestleVietnam:Save3%ofproductioncosttohelp Nestcafemore
competitive!
Selectthearea(s)
Definetheproduct'sfunction
Recordthecomponentsoftheproduct
Calculateexistingcosts
Consideralternatives
Evaluatethealternativesandmake
recommendations